Owner of eight-story building had been used as a hotel since the 1950’s. An eight-story building located at 225 E 17th Street in Manhattan, was operated as a transient hotel with 155 rooms. Buildings charged that the hotel use was in violation of the building’s certificate of occupancy which specified single room occupancy with 163 single rooms and one community kitchen. Buildings relied on the certificate of occupancy issued on August 16, 1968.

The owner argued that the building had been used and advertised as a transient hotel since the 1950’s, that its use was grandfathered, and that the certificate of occupancy relied upon by Buildings was invalid. Buildings responded by producing documents from the 1920s to the 1940s showing that Buildings’ records had consistently treated the building as a single room occupancy.

The hearing officer ruled in favor of Buildings, finding that the certificate of occupancy limited use to single room occupancy use, not transit hotel use. The hearing officer imposed a total of fine of $48,200.

On appeal the OATH Appeals Board affirmed the hearing officer’s decision that the lawful use was as a single room occupancy, not transient use. The Board rejected the owner’s claim that the certificate of occupancy was invalid or that hotel use was grandfathered since the earlier certificates of occupancy were also for single room occupancy, not transit hotel use.